Chandu on the Magic Island is one of the two features films compiled from the serial Return Of Chandu, and is notable for presenting the usually villainous Bela Lugosi as a hero and romantic lead. Lugosi is best remembered for his role as Count Dracula, exuding a seductive aura of mystery that made him American film's most suave personification of pure evil.

Battling on the high seas to protect beautiful Princess Nadji (Maria Alba) from Vindhyna's vicious grasp, Chandu (Bela Lugosi) lands his yacht on the strange island of Sutra. Nadji is mysteriously teleported to the high priest's temple on Lemuria where she is prepared for sacrifice.

Creeping along a shadowy maze of menacing passageways beneath the temple, Chandu confronts torturous threats in his frantic quest to find Nadji. Mustering all the mystical forces he can to stop her murder, Chandu is strengthened by his love for the terrorized princess.